1. I measure my network using about 1.8 mbps while playing this clip. Are you sure about the 740 kbps number you quoted?
2. Vividas uses the VP6 codec, right? On2 themselves say "In terms of video quality, VP6 and H.264 are comparable" (http://support.on2.com/h264_faq.php) which seems to be the general consensus. I've never before seen any claim that VP6 is a factor of 4 more efficient than H.264. Can you point to any references for this claim?